BackIndia at 'doorstep of revival process' from COVID-19: RBI chief Shaktikanta Das
The fiscal measures taken by the government to deal with the pandemic have so far have been well calibrated and prudent, Das mentionedBoth fiscal and monetary policy were counter-cyclical and accommodative and both were working in close symmetry, Das said
PremiumIndia is "at the doorstep of the revival process" from the coronavirus pandemic, Reserve Bank of India governor Shaktikanta Das said on Wednesday.
"It's very important that the financial entities have adequate capital (to support growth)," Das said at the launch of NK Singh’s book, 'Portraits of Power: Half a Century of Being at Ringside'.
Many of the entities have already raised capital and others are planning to, he said, adding they would certainly do so in the coming months.
Both fiscal and monetary policy were counter-cyclical and accommodative and both were working in close symmetry, RBI chief added.
The fiscal measures taken by the government to deal with the pandemic have so far have been well calibrated and prudent, Das mentioned. "The central government has provided prudent measures to provide financial support to weaker sections and small business,"he stated.
"I think post COVID, once there is containment of pandemic, the government will certainly have to spell out a fiscal roadmap that India should adopt," he further said at the launch of the book by Singh, former bureaucrat and current chairman of the Finance Commission.
On stress in the banking and NBFC sector, RBI governor said, "We need to build capital buffer for banks, NBFCs to deal with stress caused by COVID-19"
Das was speaking at the launch of the book 'Portraits of Power: Half a Century of Being at Ringside', written by former bureaucrat and current chairman of the Finance Commission N K Singh.
To prevent the virus spread in the country, the central government imposed a nationwide lockdown in the last week of March. It resulted in the economy contracting by a record 23.9% during April-June.
Indian economy is projected to contract by a massive 10.3% this year, according to an International Monetary Fund (IMF) forecast. The Reserve Bank of India expects the economy to shrink by 9.5% in the current financial year.
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